Columbia International Affairs Online: Policy Briefs

CIAO DATE: 10/2010

Iran's Subsidies Conundrum

Semira Nikou

September 2010

United States Institute of Peace

Abstract

This Peace Brief was written in advance of Iran's subsidy reform. Currently scheduled for the end of September, the reform is one of the most debated and anticipated economic overhauls in the country. It has the potential to incur severe consequences in a country already burdened by sanctions and fraught with inflation and unemployment. At the same time, reform can potentially discourage waste, reduce inefficiencies in industries, and be a catalyst for economic liberalization.